Rates and Terms for IRA investments
are available upon request.
SEP and SIMPLE IRAs are also available; please call for more information.

ROTH & TRADITIONAL IRAsA Side
By Side Comparison of Two Popular Retirement Accounts

Including inflation indexed amounts for tax years 2015 and 2016 and changes authorized by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010

Am I Eligible To Contribute?Traditional IRA: Individuals who are
under 70½ years of age for the entire tax year and who have
earned compensation or have received alimony may contribute to a traditional
IRA.Roth IRA: Unlike a Traditional IRA,
Roth IRA participants may continue to make contributions after they
have reached age 70½ . Individuals who have earned compensation
or have received alimony may contribute to a Roth IRA provided their
income falls within the following guidelines:

Full Contribution
If your modified
AGI* is:

Partial Contribution
If your
modified
AGI* is between:

Single Person Filing Individually

Tax Year 2015
$116,000
or less

Tax Year 2015
$116,000 - $131,000
no contribution if
$131,000 or more

Tax Year 2016
$117,000
or less

Tax Year 2016
$117,000 - $132,000
no contribution if
$132,000 or more

Married Couple Filing Jointly

Tax Year 2015
$183,000 or less

Tax Year 2015
$183,000 - $193,000
no contribution if
$193,000 or more

Tax Year 2016
$184,000 or less

Tax Year 2016
$184,000 - $194,000
no contribution if
$194,000 or more

*Adjusted Gross Income

How Much Can I Contribute Annually?Traditional & Roth IRAs: The amount qualified IRA owners are permitted to contribute in tax year 2015 is $5,500. In 2016 the maximum contribution limit is also $5,500. Additional catch-up contributions can be made by qualified individuals fifty or older. Future contribution limits will be adjusted annually for inflation in $500 increments.

Qualified participants are permitted to annually contribute the following maximum amounts or 100% of your earned compensation and alimony; whichever is less:

Maximum Contribution Limits

Year

Under Age 50

Age 50 or Over

2015

$5,500

$6,500

2016

$5,500

$6,500

Spousal IRA rules enable married couples filing jointly to contribute
the maximum amount to their separate Traditional or Roth IRA accounts
even if one spouse has little or no earned income. To qualify, their
combined earned income must be equal to or greater than the total contributed
amount.

IRA owners may make contributions to both a Roth IRA and a Traditional IRA in the same year. However, it is important to note that your combined Roth and Traditional IRA contributions may not exceed the maximum contribution limit in a given tax year.

Are My Contributions Tax Deductible?Roth IRA: Contributions to a Roth IRA are not tax deductible.Traditional IRA: Contributions to a Traditional IRA are fully deductible if neither you nor your spouse is an active participant in an employer sponsored retirement plan. If you are not an active participant in an employer sponsored retirement plan, but your spouse is, you may deduct the following:

Married Couple Filing Jointly Spouse is an active participant in an employer
sponsored retirement plan

Tax Year

Full Deduction if your
modified AGI* is:

Partial deduction if your modified AGI* is between:

2015

$183,000 or less

$183,000 - $193,000
no deduction if $193,000
or more

2016

$183,000
or less

$184,000 - $194,000
no deduction if $194,000
or more

*Adjusted Gross Income

If you do participate in an employer sponsored retirement plan, your income and filing status will determine the amount of your contribution that is deductible from taxes:

Single Person Filing IndividuallyContributor is an active participant in an employer sponsored retirement plan

Tax Year

Full Deduction if your modified AGI* is:

Partial Deduction if your modified AGI* is between:

2015

$61,000 or less

$61,000 - $71,000no deduction if $71,000 or more

2016

$61,000 or less

$61,000 - $71,000
no deduction if $71,000
or more

Married Couple Filing Jointly
(Contributor is an active participant in an employer sponsored retirement plan)

the distribution is made after the 5-year taxable period beginning
with the first taxable year in which a Roth contribution was made. AND...

the distribution was made:

after the recipient has reached age 59½ OR,

due to
permanent disability or,

to a beneficiary in the case of death or,

for first-time home buyer's expenses, up to $10,000.

Unqualified distributions of earnings are includible in income and subject
to the 10% early withdrawal tax, unless one of the exceptions listed
under Traditional IRAs applies.

Traditional IRA: You must pay income tax on distributed amounts from a Traditional IRA attributable to deductible contributions and earnings.

Amounts withdrawn prior to
age 59½ are also subject to an additional 10% early withdrawal
tax unless one of the following exceptions applies to the distribution:

it is made due to death or disability,

it is made in the form of certain periodic payments,

it is used to pay medical expenses in excess of 7.5% of AGI,

it is used to purchase health insurance for unemployed individuals,

it is used for qualified education expenses,

it is used for first-time home buyer expenses of up to $10,000.

or it is made to a qualified reservist called to active duty after September 11, 2001.

Am I required to receive distributions during my lifetime?Roth IRA: As a Roth IRA owner, you are never required to take any distributions from your account during your lifetime.
Traditional IRA: As a Traditional IRA owner, you are required to begin taking minimum distributions from your accounts at age 70 ½. Your required minimum distributions must be distributed to you by December 31 of each year after that. You may choose to delay your first RMD until April 1 of the calendar year following the year in which you attain age 70 ½. However, if you choose to wait, you will also be required to take another distribution by December 31 of that same year to satisfy that year’s RMD requirement.

If I die, what happens to my IRA?Roth & Traditional IRAs: The entire amount of your IRA will be paid to your beneficiary or beneficiaries. They can determine the manner in which the account is paid.

Is My IRA Insured?Traditional & Roth IRAs: Your individual retirement accounts at our institution are added together and federally insured up to a combined total of $250,000. Retirement accounts are insured separately from any Single, Joint or Revocable Trust accounts you have on deposit at our institution. This $250,000 of insurance coverage applies to federally insured retirement deposits only. Investments such as mutual funds, stocks, bonds, etc. are not guaranteed and may lose value.

Investments such as mutual funds, stocks, bonds, etc. are not guaranteed and may lose value.

IMPORTANT NOTE – The information contained in this brochure is not intended
to provide specific advice or recommendations for any individual.
We recommend that you consult your attorney, tax or financial advisor
with regard to your personal situation.

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